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Some Lawmakers Skeptical Of Treasury Toxic Asset Plan

This article is more than 10 years old.

Tuesday, Treasury Secretary Timothy Geithner will go before the House Financial Services Committee to talk about the AIG bonus plan, but what is also expected to come up is a new plan to buy up toxic assets from banks. Some Massachusetts representatives are skeptical.

Secretary Geithner says the Obama administration will team up with private investors to buy up a half-trillion dollars of bad assets from banks.

Congressman Barney Frank, who heads the Financial Services committee, says the proposal is a good approach to helping banks lend more money.

But Congressman Michael Capuano disagrees.

"I think what the FED and treasury are doing this week is horrendous," Capuano says. "I think it is incredibly dangerous to take almost all the risk and put it on the taxpayer's back."

Members of the Financial Services Committee, including Capuano and Frank, were in Boston Monday for a hearing about how to get the credit markets moving again.

This program aired on March 24, 2009. The audio for this program is not available.

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